Time to sell new-crop feed wheat?

By FWi staff

CEREAL growers should take advantage of new-crop feed wheat prices and consider selling some of their grain, say traders.

Renewed interest in new-crop on the domestic market has helped push ex-farm values up to about 70/t for harvest time, but export interest remains limited, says Glencores James Maw.

“There is carry in the market from harvest onwards with wheat for November worth 72-74/t, and June 2002 at about 78-80/t. Farmers with crop in the ground should look at their budgets and start to get some cover.”

Banks Cargill agrees that there is potential for high premiums this coming season, and selling opportunities should not be missed.

Old-crop prices have risen about 2/t over the last two weeks to pre-foot-and-mouth levels, at 70/t.

This is mainly due to merchants buying to cover April requirements which fell behind when prices, hence trade, dropped following the foot-and-mouth outbreak. But there is very little carry and the spot market remains tight, adds Mr Maw.

Demand for barley is very quiet with no export requests and limited domestic requirements, mainly restricted to those areas hardest hit by foot-and-mouth and where there are increased numbers of livestock stuck on farms.

“This has created some regional price differences, but farmers may be forced to sell to intervention,” says Mr Maw.

Intervention is worth 72.5/t delivered for May with barley on the spot market about 73-75/t. “With little demand for grain, intervention could become a viable option.”